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Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $74 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $222,300 per month. Wild-Water Works Water Park expects to sell 7,900 tickets. Find break-even first, then compute the margin of safety in tickets and sales in dollars.

Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $74 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $222,300 per month. Wild-Water Works Water Park expects to sell 7,900 tickets. Find break-even first, then compute the margin of safety in tickets and sales in dollars.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MCQ: The use of fixed costs to extract higher percentage changes in profits as sales activity changes...
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Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $74 per person as a one-day entrance fee. Variable costs per person are $34 and fixed cost amount to $222,300 per month.

Wild-Water Works Water Park expects to sell 7,900 tickets. Find break-even first, then compute the margin of safety in tickets and sales in dollars.

 

Net sales revenue per unit Variable costs per unit = Unit contribution margin (Fixed Costs + Target Profit) / Contribution Margin per unit = Required Sales in Units Expected Sales Break-even sales = Margin of safety in units - = = Margin of safety in units X Sales price per unit = Margin of safety in dollars X =
Transcribed Image Text:Net sales revenue per unit Variable costs per unit = Unit contribution margin (Fixed Costs + Target Profit) / Contribution Margin per unit = Required Sales in Units Expected Sales Break-even sales = Margin of safety in units - = = Margin of safety in units X Sales price per unit = Margin of safety in dollars X =
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